Menu Prices

WHY DID YOU INCREASE YOUR MENU PRICING?

While we understand our customer's concerns for costs, let us try to explain our recent price increases:

>> LABOUR COSTS <<

Ontario's hourly minimum wage recently rose to double digits at $10.25. That's a 75-cent increase from the previous rate, which was $9.50 per hour. The wage has increased each year since 2004, when it stood at $6.85 per hour. With the latest increase, the rate will have grown by almost 50% since 2004. In 2004, the hourly rate was $6.85 per hour until it was increased to $7.15 on Feb. 1 that year. The rate was boosted to $7.45 in 2005; $7.75 in 2006, $8 in 2007; $8.75 in 2008 and to $9.50 per hour on March 31, 2009. At $10.25 per hour, it adds up to an extra $6 per day, $30 a week, and about $120 a month for those who make minimum wage and work eight-hour days, five days a week. Despite the fact that it was the seventh consecutive annual increase to the minimum wage in the province, during that time span we have raised prices only 4 times.

>> DAIRY COSTS <<

Furthermore, Dairy prices in this Province remain "out of control". At Caffe Demetre our biggest expense is dairy, particularly cream, used for ice cream. We use real cream. Our ice cream is natural, no chemicals or additives. The Canadian Dairy Commission (CDC) - a crown corporation, has implemented steady yearly increases in February of each year for the last 21 years. Two years ago they sought another substantial increase in September 2008 because of high fuel prices. Therefore in 2008, we had TWO price increases in Dairy. The price for Dairy in Ontario has skyrocketed by 60% over the past 15 years. But the cost to produce the milk increased by just 5% over the same time period. This increase hurts and is twice the rate of inflation, making Canadian dairy prices among the highest in the world. Year after year the CDC forces Canadians and Restaurants to swallow price increases when production costs go up, but they refuse to pass along the savings when production costs go down. This is an antiquated supply management system that holds consumers in Ontario hostage each and every year. We contacted Upstate Farms Co-op, a huge dairy company in buffalo New York and ask them for prices. We were shocked to find out that we are paying TWICE as much for dairy here in Ontario. That's right TWICE! We are not allowed to import any Dairy from the U.S. For us, Free trade is a joke. There is no such thing. If you imported dairy products from the US, the tariffs are 310%.

>> OTHER FOOD COSTS <<

Bakery products- Increased 8.8% in 2009; Fresh Fruit - Increased 11.5 % in 2009; Non Alcoholic Beverages- Increase 8.3% in 2009. According to the International Monetary Fund, which tracks global food prices, world food commodity prices have soared by 65% in the past three years following a 10% decrease over the previous 10 years. The price of wheat, which is used around the globe to make bread and pasta, has more than doubled in the past two years. Wheat demand has outpaced consumption in six of the past seven years, pushing inventories to the lowest level in 25 years. The prices of other basic staples, such as rice, corn, coffee and soybeans, have also skyrocketed.

Fresh fruit is our 2nd largest expense. Although prices are seasonal in the summer months, we have in the past, had to absorb higher costs in the other 9 months -since our Fresh Fruit (strawberry) Crepes and Waffles account for a huge part of our menu sales. As a result of higher costs we have had to add a "fresh fruit surcharge" so that we did not have to raise prices for all other "non-fruit" crepes.

Besides, our prices for Iced Cream Crepes are still much cheaper than our competition, and we put a soft-ball-sized-scoop of homemade, 17% butter fat, natural ice cream on each crepe or waffle-fresh whipped cream included!!!